Chapter 1

Introduction
Marketing is the moving and exciting activity in everybody activities. The sellers, distributors,
advertising agencies, consultants, transporters, financers, store agencies one as a counter are part
of the marketing system. Any exchange process be it consumer, goods, intermediary goods,
services of ideas, comes under the preview of marketing. It is very often regarded that the
development of markets and marketing is synonymous with the economic development of account.
Through marketing is an action discipline. In the ever-growing corporate world, marketing is being
regarded as a crucial element for the success of an Enterprise. The marketing discipline is
undergoing fresh re-appraisal in the light of the vast global, technological, economic and social
challenges facing today's companies and countries.

Philip Kotler has therefore defined marketing as "it is a social and managerial process by which
individuals and groups obtain what they need and want through creating, offering and exchanging
products of values with others". Many Indian companies espouse a satisfied customer philosophy
and describe marketing as customer-satisfaction engineering. Since the economy in this country has
changed from a primary condition of scarcity to gradual and steady stage of affluence, largely giving
consumers the opportunity to choose among many varied alternatives, satisfaction has become a
major concern of business.

Introduction to Customer Behaviour

One thing that we have in common is that we all are consumers. In fact everybody in this world is a
consumer. In fact everybody in this world is a consumer.
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Every day of our life we are buying and consuming an incredible variety of goods and services.
However, we all have different tastes, likes, dislikes, and adopt different behaviour patterns while
making purchase decisions. The term consumer behaviour refers to the behaviour that consumers
displaying searching for purchasing using evaluation and disposing in searching for purchasing using
evaluating and disposing of products and services that they exact will satisfy o how individuals
make decisions to send their available resources (time, money and effort) on consumption related
items. It includes the study of "What they buy", "Why they buy",
"When they buy it", "Where they buy it", "how often they buy it" and "how often they use"

DEFINITIONS:
Consumer Behaviour (or Buyer Behaviour) is broadly defined by various scholars & researchers as:

1. It's behaviour displayed by the consumers during the acquisition, consumption and
disposition of products, services, time and ideas by decision making units.

2. It is the body of knowledge which studies various aspects of purchase and consumption of
products and services by individuals with various social and psychological variables at play.

3. The behaviour that the consumers display in searching for, purchasing, using, evaluating and
disposing of products and services that they expect will satisfy their needs.

4. The process and activities people engage in when searching for, selecting, purchasing, using,
evaluating, and disposing of products and services to satisfy their needs and desires.

5. The activities directly involved in obtaining, consuming, and disposing of products and
services, including the decision processes that precede and follow these actions.

6. The American Marketing Association (AMA) defines consumer behaviour as "The dynamic
interaction of cognition, behaviour & environmental events by which human beings conduct
the exchange aspect of their lives". Consumer behaviour is helpful in understanding the
purchase Behaviour and preferences of different consumers. As consumers, we differ in
terms of sex, age, education, occupation, income, Family setup, religion, nationality and
social status.

A MODLE OF CONSUMER BEHAVIOUR

A consumer decisions to purchase a particular product of service is the result of complex

interplay of a number of variables. The starting point of the decision process is provided by the
company marketing stimuli in the shape of product, promotion, price and distribution strategy.
Consumer often purchase new products that are associated with a favourable viewed brand
name. The term consumer behaviour refers to the behaviour that consumer displaying searching
for purchasing, using, evaluating and disposing of products and services that they expect will

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satisfy these needs. The study of consumer behaviour in the study of how individuals make
decisions to spend their available resources (time, money, effort) on consumption related items.

It includes the study of "what they buy", "why they buy", "when they buy", "where they buy",
"how often they buy" and "how they use".

MODEL OF CONSUMER BEHAVIOUR

Marketing Other stimuli
stimuli

Price Economic
Place Technology
Political Political
Promotion Culture

Consumer Customer
Characteristics Decision Process

Cultural Problem recognition

Social Information
Personal Search
Psychological Evolution
Decision
post
Purchase
Behavior.

DETAILED MODEL OF FACTORS INFLUENCING CONSUMER

BEHAVIOUR

CULTURAL FACTORS:

Culture:
Culture is the most fundamental determinant of a persons wants and behaviour like set of values,
perceptions, preferences and behaviours through his or her family member.

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SOCIAL FACTORS: References Groups:

A persons reference groups consist of all the groups that have a direct (face to face are indirect
influence on the person's altitude or behaviour. This group to which the person, belongs and
interacts.

Personal Factors:
A consumer decision also influenced by personal characteristics notably the buyers age & life cycle
stage, occupation, economic circumstances, life style and personalitv and self concept.

PSYCHOLOGICAL FACTORS: Motivation:

A person has many needs at any given time. Some needs are biogenic. They arise from
psychological states of tension such as hunger, try stand discomfort.

Perception:
Perception is defined as "The process by which an individual selects, organizes, intercepts,
information, inputs to create a meaningful picture of the world".

NEED FOR STUDY

Consumer behaviour plays a major role for the growth of the company in the modern market
scenario. The basic idea of this study is to find the consumer behaviour towards HyperCITY

The needs have to be recognized and necessary steps have to be taken to make the changes. India
is growing rapidly and changes are dynamic. People are changing, the preference and the demand
is changing. The market also has to change accordingly. The purpose of consumer behaviour is not
only for retaining the customers but also attracting new customers and increasing the sales also
creating and maintenance of brand awareness. In this competitive market the level of consumer
satisfaction decides the success of any product and any company.

The night consumers have to be targeted and the right strategy should be implemented at the right
time. This will give the desired results

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OBJECTIVES OF THE STUDY

• The main obiective is to determine the current consumer behaviour levels of the customers with
regards to HyperCITY.

• To study and analyse consumer shopping behaviour towards HyperCITY.

• To assess the behaviour level of different tvpe of customers shopping at HyperCITY.

• To identify what type of strategies are suitable for the company to reach the targeted customers.

• To find out the factors which influence the consumption of the products in HyperCITY.

• To identify effective advertising sources which are influencing customer purchasing behaviour at
HyperCITY.
• To find out how the consumers spent their incomes, time on the purchasing of the products.

RESEARCH METHODOLOGY

The survey technique is intended to secure one or more items of information from a sample of
respondents who are representatives of a larger group. The information is recorded on a form
known as questionnaire. As data are gathered by asking questions from persons who are believed
to have desired information, the method is known as questionnaire technique.

REASONS FOR WIDE USE OF THIS METHOD:

o It can secure both quantitative and qualitative information directly from the respondents.

o It is the only method of directly measuring attitudes and motivations.

o It is quite flexible in terms of the types of data to be esammbled, the method of collection or
the timing of research.

Meaning of Research
According to D. Slessinger and M. Stephenson in the Encyclopedia of social sciences define
research as the manipulation of things, concepts or symbols for the purpose of generalizing to
extend, correct or verify knowledge,
TYPES OF RESEARCH
1. Exploratory Research
2. Descriptive Research.

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EXPLORATORY RESEARCH

Exploratory research studies are also termed as formulate research studies .The main purpose of
such studies in that of formulating a problem for more precise investigation or of developing the
working hypothesis forms an operational point of view.

DESCRIPTIVE RESEARCH
Diagnostic Research studies determine the frequency with something occurs or its association with
something else. In this project, information pertaining to customer needs satisfaction and their
demographic profile was collected; hence it is a descriptive research.

1) PRIMARY DATA:
Meaning: Primary sources of data are the data which needs the personal efforts of collect it and
which are not readily available. Primary source of data are the other type of source through which
the data was collected.

Following are few ways in the data was collected:

1. Questionnaires:
It is the set of questions on a sheet of paper was being given to of fill it, bases on which the data
was interpreted.

2. Direct interviewing:
Direct interviewing involved the process where I asked the questions directly to the customers and I
got the feedback.
2) Secondary data:
Secondary sources are the other important sources through which the data was collected. These
are the readily available sources of the data where one had need not put much effort to collected,
because it is already been collected and part in an elderly manner by some researcher, experts and
special.

The secondary sources helpful for the study were

a) Text books like marketing management research methodology Advertisement and sales
promotion etc.

b) Internet was made use for the collection of the data.

1. News papers were also referred.

2. Business magazines were referred.

3) Sample size:

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By using judgment random sampling technique 100 respondents are selected for the purpose of the
study.
4) Period of study:
The study is undertaken in the duration of 41 days.
5) Research approach:
The survey method was adopted for collected the primary data. Survey research is systematic
gathering of data from respondent through questionnaire.

6) Research instrument:
The data for this research study was collected by survey technic using interview method guided by
questionnaire.
7) Collection of Data:
Questionnaire and personal interviews are the methods that I have used for collecting the data.

SCOPE OF THE STUDY

HyperCITY has three branches in Mumbai. My scope is limitation to one Branch (THANE Viviana
Mall). The scope of the study is to identify the consumer behaviour HyperCITY. It is aimed at
enlightening the company about different steps to be taken up to increase the share of HyperCITY
with regard other competitors and also to make the company to provide better customer services.
The scope of the study is only confined to the area covered under Mumbai and only confined in
studying about the consumer behaviour towards
HyperCITY.

LIMITATIONS

• Time has been a major constraint throughout the study as it has been only for duration of 2
months.

• As this survey was restricted to Mumbai this cannot be stated as an in depth research on this
subject.

• Enough care is taken in formulating the questionnaire, still some errors may creep in.

• The consumer behaviour varies according to different products.

• Quality verses price was not taken into the consideration.

• The project is based on the interview methodology by a stared questionnaire and the personal
skills of the person undertaking the project affect the results.

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Chapter 2
REVIEW OF LITERATURE

REVIEW OF LITERATURE CONSUMER BEHAVIOUR:

What is Consumer Behaviour?

Activities people involved in when selecting, purchasing, and using products so as to satisfy needs
and desires. Consumer behaviour involves the psychological process that consumers go through in
recognizing needs, finding ways to solve these needs, making purchase decision (e.g., whether or
not to purchase a product and, if so, which brand and where), interpret information, unmake plans,
and implement these plans (e.g., by engaging in comparison shopping or actually purchasing a
products).

SOURCES OF INFLUENCE OF THE CONSUMER:

The consumer faces numerous of influence. Often, we take cultural influences for granted, but they
are significant. An American will usually not bargain with a storeowner. This, however, is common
practice in much of the world. Physical factors also influence our behaviour. We are more likely to
buy a soft drink when we are thirsty. For example, and food manufacturers have found that it is
more effective to advertise their products on radio in the late afternoon when people are getting
hungry. A person's self image will also tend to influence. What he/she will buy. An upwardly mobile
manager may buy a flashy car to project an image of success. Social factors also influence what the
consumers buy-often, consumers seek to imitate others whom they Admire, and may buy the same
brands, the social environment can include both the mainstream culture e.g., Americans are more
likely to have corn flakes/ham and eggs for brake past than to have rice, which is preferred in many
AsianCountries) and a sub culture (e.g., rap music often Appeals to a segment within the population
that seeks to distinguish itself from the main stream population). Thus sneaker manufacturers are
eager to have their products worn by admired athletes. Finally, consumer behaviour is influences by
learning ‡ you try a hamburger and learn that it satisfies your hunger and tastes good, and the next
time you are hungry, you may consider another hamburger.

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DECISION MAKING INVOLVES FOLLOWING STEPS

1.Need recognition
5. Purchase evaluation
2. Information search
4. Purchase decision
3. Evaluation of alternatives

Problem recognition - you realize that something is not as it should be. Perhaps, for example, your
car is getting more difficult to start and is not accelerating well. Information search- what are some
alternative ways of solving the problem? You might buy a new car, buy a used car, take your car in
for repair ride the bus, ride a taxi, or ride a skateboard to work. A customer can obtain information
from several sources: Personal sources: family, friends, neighbours etc.
Commercial sources: advertising, sales forces retailers, dealers, Packaging, point-of sale displays.
Public sources: newspapers, radio, television, consumer organizations, special magazines.
Experimental sources: handling, examining, using the product Internal and external search for
information to make a decision Internal search: Scan memory. External search: shopping, personal
sources, public media,

Advertisements Evaluation of alternatives: A skateboard is inexpensive, but may be ill-suited for

long distances and for rainy days .Purchase stage, and sometimes a post-purchase stage (e.g., you
return a product to the store because you did not find it satisfactory), in reality, people may go back
and forth between the stages. For example, a person may resume alternative identification during
while evaluating already known alternatives. The decision makers) have the power to determine
issues such as: Whether to buy? Which product to buy? Which brand to buy? Where to buy it?
When to buy?

Note, however, that the role of the decision maker is separate from that of the purchaser. From
the point of view of the marketer, this introduces some problems since the purchaser can be
targeted by point-of-purchase (POP) marketing effort that cannot be aimed at the decision maker.
Also note that the distinction between the, purchaser and decision maker be somewhat blurred the
decision maker may have to make a substitution if the desired brand is not in stock, the purchaser
may disregard institutions by error or deliberately).

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BUYER BEHAVIOUR - CULTURAL FACTORS

Cultural factors have a significant impact on customer behaviour. Cultural is the most basic cause of
a person's wants and behaviour. Growing up, children learn basic values, perception and wants
from the family and other important group. Marketing are always trying to spot
"cultural shift" which might point to new products that might be wanted by customer or to
increased demand.
For example, the cultural shift towards greater concern about health and fitness has created
opportunities (and now industries) servicing customers who wish to buy:
Low calorie foods Health club memberships Exercise equipment Activity or health- related holidays
etc.
Similarly the increased desire for "leisure time" has resulted in increased demand for convenience
product and service such as microwave ovens, ready meals and direct marketing service businesses
such as telephone banking and insurance. Each culture contains "sub-cultures" ‡ groups of people
with shared values. Subcultures can include nationalities, religions, racial groups, or group of people
sharing the same geographical location. Sometimes a sub-culture will create a substantial and
distinctive market segment of its own.

BUYER BEHAVIOUR - SOCIAL FACTORS:

Introduction:

A customer's buying behaviour is also influenced by social factor, such as the group to which the
customer belongs and social status. In a group, several individuals may interact to influence the
purchase decision. The typical roles in such a group decision can be summarized as follows:

Initiator: The people who first suggest or think the idea of buying a particular product or service.

Influence: A person whose view or advice influences the buying decision.

Decider: The individual with the power and or financial authority to make the ultimate choice
regarding which product to buy.

Buyer: The person who concludes the transaction.

User: The person (persons) who actually uses the product or service.

INDIVIDUAL FACTORS THAT SHAPE BUYER BEHAVIOUR

PROCESS

HIGH INVOLVEMENT: Extensive problem

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I’m
The various purchase influence factors are as follows:

CULTURAL FACTORS
Cultural factors exert a broad and deep influence on consumer behaviour. The marketer needs to
understand the role played by the buyer's culture, subculture, and social class.

Culture
The set of basic values, perceptions, wants, and behaviours learned by a member of society from
family and other important institutions,

Subculture
A group of people with shared value systems based on common life experiences and situations.

Social classes
Relatively permanent and ordered divisions in society whose members share similar values,
interests, and behaviours.

A consumer's behaviour also is influenced by social factors, such as the consumer's small groups,
family, and social roles and status.

Groups

Two or more people who interact or accomplish individual or mutual goals.

Family

A family is a domestic group of people, or a number of domestic groups linked through descent
demonstrated or stipulated) from blood relation, marriage or adoption.

Roles and status

A person belongs to many groups- family, clubs, organisations.

The person's position in each group can be defined in terms of both role and status.

PERSONAL FACTORS

A buver's decisions also are influenced by personal characteristics such as the buyer's age and life
cycle stage, Occupation, economic situation, lifestyle, and personality and self-concept.

Age and life-cycle stage

People change the goods and services they buy over their lifetimes. Tastes and preferences changes
as lift-cycle goes.

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